What Does Shopify’s #KillTheCheckout Mean for Merchants?

woman online shopping

 

In less than 15 years, Shopify has matured into a publicly traded company with a market cap of over $13 billion. Shopify reports that over half a billion merchants use its platform to sell online, which generates gross merchandise volume of over $45 billion. Given the scale Shopify has reached, there’s no question that the ripples of their actions are felt across the entire ecommerce and credit card processing industry.

The position of leadership Shopify occupies within the industry is why we want to focus on some recent comments the company made. According to Andre Lyver, who is head of payments at Shopify, the company wants “to kill the checkout forms of today. They have overstayed their welcome.” This bold statement actually spawned the hashtag #KillTheCheckout.

Why is Shopify So Against the Current Online Checkout Experience?

Shopify didn’t pick this focus out of the blue. Instead, it’s the result of tons of data that shows just how much the online checkout experience someone encounters influences whether or not they ultimately buy. Specifically, there’s data that shows under-performing at checkouts costs merchants over $200 million a year in lost revenue opportunities.

The need for extremely simple checkout experiences has become even more crucial as more online purchasing activity moves to mobile devices with smaller screens. When a consumer finds something they want to buy, the last thing they want to do is deal with typing in their shipping and payment information on their phone.

Given the very strong stance Shopify is taking on this issue, you may be wondering if they have any concrete plans for changing the current standards. The answer to that question is a definite yes. As Lyver explained, even though the company acknowledges that this change is a “big ask,” the company is “always looking for the next big way to help our merchants succeed.”

The core of what Shopify plans to do is spread out the checkout experience instead of piling on everything at the end. Authentication is an example of a task that Shopify has the technology to handle in the background as someone shops. In addition to taking a mobile-first approach to rethinking checking out, the company is well aware of how vital security is during every stage.

What This Means for Your Business

Although Shopify is making some bold statements, the good news is any action they take in this area will only benefit your business. If you look at the reasons why Amazon has become so dominant at ecommerce, one of the most important is how much friction they’ve removed from payments.

If Shopify is able to take similar steps for all of their merchants, these advances will trickle out to all businesses and make it easier for their customers to pay online. So as long as you work with a credit card processing company that’s committed to keeping up with the latest technologies and best practices, your business should actually benefit from any progress that Shopify makes.

Posted on Monday, March 26th, 2018